[ When Nike meets Toyota #13-3 ]
First we build people, then we build APPAREL
MAS group is serious about people development. To paraphrase Fujio Cho, former President/Chairman of Toyota, "First we build people, then we build apparel" by Mahesh would not be wrong at all. They understand the attached Toyota Human Systems Model and firmly believe and practice "Better people make better performance". This is already paying off, as they are known for their operational excellence that clients want to partner with.
From the beginning, the three founding brothers, Mahesh, Sharad and Ajay, wanted to be a good employer. According to IFC report (2007), they "provided free transportation, quality breakfast, in addition to adhering to the basics of working hours, age limits, and a safe working environment etc. Workplaces are air-conditioned to provide a cool working environment, and the young children of more than 90% of female employees are cared for in the company's kindergarden." They thought it was right things to do and later people called it CSR. Now with the right tools & system called 'Lean', there was a great synergy.
One of the HR practices we were introduced to on the afternoon of our first day was the education and training of new hires. Whenever there is a turnover or a new worker is needed due to a new model, the field informs HR of the skills required and the date required. HR recruits the workers and sends them to the line after 12 days of training to ensure efficiency and quality. And all of this training follows the method of JI Training (yes, JI Training is old but still good). This ensures the quality and productivity of the production line, and as a result, HR fulfills the needs of their customer, the production line. What's unusual is that during the first week after entering the production site, HR is in constant contact with the site to check the status of the new workers. I was surprised to see this level of attention to detail.
Furthermore, the company has set up a university within the company to provide continuous learning opportunities for employees. In addition to the most sought-after courses in IT and English, the university also offers courses in IE and humanities. All of these programs are formalized under MAS's Women Go Beyond program, which was launched in November 2003 and is increasingly recognized by customers as the benchmark for ethical sourcing practices in the industry. Women Go Beyond, which celebrated its 20th anniversary last year, is actively supported by customers such as Victoria Secret and Gap. These efforts are why Nike, which had been plagued by CSR issues such as poor working conditions and labor exploitation in its OEM factories, selected MAS as a strategic partner in 2004. As a result of all this, MAS group has continued to grow despite having a higher minimum wage than the competitors in China, India, and Bangladesh at the time.
To be continued
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Store Manager @ Nordstrom | Talent Development, Team Motivation
1moTacey is a rock star!